Ethereum [ETH] witnessed a sharp fall in fee revenue this week, suggesting decreased network traffic and user participation.

According to on-chain analytics firmIntoTheBlock, Ethereum validators collected a total of $116 million in fees over the week, representing a significant drop of 41.2%.

The slump came amidst decreasing meme coin trading on the network, a space which Ethereum has historically dominated.

Trading volumes for top Ethereum-based coins such as Pepe [PEPE],Shiba Inu [SHIB],andFloki Inu [FLOKI] ebbed substantially over the week.

This happened post a frenzied demand in the first half of the month, as per AMBCryptos analysis of Santiments data.

The fading meme coin mania was also reflected in the drop in trading volume of Ethereum-based decentralized exchanges (DEXs) platforms frequently used by crypto degens to swap tokens.

According to AMBCryptos analysis of DeFiLlamas data, volumes of just over $15 billion were facilitated on Ethereum DEXes in the week, marking a 25% drop from the week prior.

The decline occurred as investors turned to the Solana [SOL] blockchain to satiate their meme coin appetite. Solanas total DEX volumes rose 3% over the week.

An avalanche of new meme coins created on the network over the week, brought in more users, and consequently more revenue.

Solana offered a faster and cheaper alternative for degens to flip coins in comparison to Ethereum.

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The average transaction fee paid by Solanas users in the last 24 hours was $0.027, as per SOLs market value at press time. On the other hand, Ethereum charged $1.19 on average to validate a transaction.

The reduced on-chain traffic meant that fewer native ETH tokens moved, in turn implying lower demand. This partly contributed to a decline of 5% in its value over the week, according to CoinMarketCap.

Originally posted here:

Ethereums 41% fall Is Solana the reason behind it? - AMBCrypto News